The star has given the full amount of his £25k award prize money to the Music Venues Trust, which operates to protect the Britain's grassroots live music spots.
He was given the award on October 16 as his new release the album was chosen as the top album of the previous year.
The musician has decided to donate the funds to the Music Venues Trust, in acknowledgment of the essential function small stages played in his early career.
"I personally couldn't be pursuing my current career if it hadn't been for all the gigs I played around the region, and further afield, when I was beginning," said Sam Fender. "These spaces are iconic, but they are struggling."
Since the start of 2023, more than 150 of these locations have shut down – approximately one-sixth of the entire UK sector.
Over the past year, well-known musicians including Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its attempts to support the industry, by including a modest fee to their ticket costs, which supports local stages.
Sam Fender also participated, collecting over £100k on his 2024 arena tour to support numerous grassroots venues across Britain.
The donation assisted locations that were confronting possible closure due to issues arising from water damage, blazes and personal losses, as well as regulatory hurdles, court cases and noise complaints.
Additional spaces were granted funding support in upgrading facilities and technical equipment that directly benefitted performers and fans.
"The concept that funds from shows in big venues supports the local stages, where it kicks off for artists like me, is just sensible," Fender has stated.
Fender is far from the only musician to contribute his Mercury Prize winnings to good deeds.
Back when the band received the trophy in the year 1996 for their album the album, lead singer Cocker announced that the act would give their prize money to the organization the charity.
In 2002, rapper and singer Ms Dynamite divided her bounty across several charities, like the NSPCC and a Sickle Cell organization.
"And I contributed a thousand pounds to my local community centre, to their gymnastics program, because I trained in gymnastics when I was a child and they lacked better apparatus," Ms Dynamite told a publication.
In recent years, Ezra Collective contributed their prize money to the local youth club that developed their group, in addition to other grassroots music organisations.
And 1994 winners the group gave their prize to a multiple sclerosis charity after a close contact was identified with the illness.
"Receiving the award was ample," stated singer Heather Small. "The money was the bonus but we didn't need the bonus, because we had the cake. So our winning touched another person's life."
Last week, the MVT announced it had rescued two grassroots venues in that region, by bringing them into community ownership.
One venue in the city and the second in the city were bought under the Own Our Venues initiative, which is backed by a national body and music fans who purchase "stakes" in the venues.
